| conversion premium | Difference between the conversion price and the current stock price divided by the current stock price.
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| conversion price | The amount of par value exchangeable for one share of common stock. This term really refers to the stock price and means the dollar amount of the bond's par value that is exchangeable for one share of stock.
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| conversion ratio | The number of shares per $1,000 bond (or debenture) that a bondholder would receive if the bond were converted into shares of stock.
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| conversion value | What a convertible bond would be worth if it were immediately converted into the common stock at the current price.
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| convertible bond | A bond that may be converted into another form of security, typically common stock, at the option of the holder at a specified price for a specified period of time.
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| force conversion | If the conversion value of a convertible is greater than the call price, the call can be used to force conversion.
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| warrants | A security that gives the holder the right—but not the obligation—to buy shares of common stock directly from a company at a fixed price for a given time period.
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